How to Price Bookkeeping Services for Clients of All Sizes

how much to charge for bookkeeping

Yet, setting your consulting rates doesn’t need to be an anxiety-inducing experience that keeps you up at night. Done right, it should be a downright rewarding experience for both you and the client. Find out more on bookkeeping accounting skills, how to earn accounting degrees and bookkeeping certifications, getting jobs, salary expectations, and more.

how much to charge for bookkeeping

Manage payroll.

how much to charge for bookkeeping

Since accountants use the information gathered by bookkeepers to prepare larger financial statements and reports, the accounting process wouldn’t be possible without the help of bookkeepers. Hiring a bookkeeper that totally understands your industry and its regulations is an important distinction to make when you’re looking for the right person or team to fill the job. Businesses in the hospitality or property management industries may need different financial services than business owners of a restaurant franchise. Businesses that have been in operation longer, manage more employees, or are growth-driven may require more robust bookkeeping services. Not every business owner needs the same level of financial management services. Depending on your industry, the size of your company, how many employees you have, and how long you’ve been operating, you may need more or less support.

  1. In the consultation, you can take a look at their bank account, see how many transactions they have, and see how complex everything is.
  2. Occasionally, there’s a problem where I need to dig to find the solution, or my client has a special request I need to take care of, and in those cases, it will take me the full five hours.
  3. These costs are different for everyone, depending on tax status and type of business.
  4. They will keep your books in order and ensure your business has the financial strength required to operate.
  5. They’ll be more inclined to pay higher fees if they see you’ve been endorsed by well-known software companies, especially if it’s the software that they use for their accounts.
  6. It’s natural to dislike the process of setting your consulting rates, but you shouldn’t have to give up money or sleep because of it.

Average prices for bookkeeping services: Fast facts

One of the first departments to slip through the cracks is often bookkeeping and accounting. Even if you’re “not a numbers person,” or even running a not for profit operation, there’s no denying that it’s cash flow that keeps your business afloat. There’s a lot of coordination and logistics involved in running a small or medium sized business. Entering your busy season or dealing with employee turnover can distract business owners— resulting in inefficient infrastructure and plateauing growth strategy. Making sure your books are in order can help you save on taxes, stress, and give you the insight to improve efficiency and increase your revenue. Whether you outsource your bookkeeping or decide to hire someone in-house, it’s no question that this is an important position to consider when managing your business.

You’re our first priority.Every time.

I want you to think about all the hidden costs that come along with starting your own business. You are paying for your own computer, your own equipment, and your own office supplies. You are usually paying for QuickBooks, your education, and insurance. Right now my goal is to have all my clients on a fixed-rate pricing scale.

how much to charge for bookkeeping

But breaking it down and building your pricing model by considering all the relevant factors will give you a reasonable solution to test. Though you must be willing to make changes if it isn’t working for you—even if that means having tough conversations with clients. The template is divided into seven sections, and includes critical details for each step. Bookkeepers, especially new businesses (the ones who don’t have to make the sometimes messy transition to another pricing model), should avoid hourly billing for that reason. Typically, you’ll want to charge your more frequent clients at a lower rate because you’re seeing them more often and reviewing their books on a regular basis.

Practice barrier #6: value pricing & bundling

Full-time bookkeepers keep track of all day-to-day operations, financial reporting, cash flow, tax filing, credit card accounts, customer invoices, monthly transactions, and much more. Businesses typically expect certain services to be part of bookkeeping, but providing additional offerings that add value to your clients’ businesses can justify charging a higher fee. These tasks might require different certifications, specialized skills, or additional time, which means they can be billed at a different rate. If you’re having trouble determining how much to charge a client, it’s perfectly fine to start out working with them at an hourly rate and moving to a fixed rate later on.

Forming an LLC for your consulting business will protect your personal assets. The conversation about rates happens with every client, sometimes more than once. Sometimes it’s pleasant, sometimes it’s awkward, why is a debit a positive and sometimes it’s ugly. However, remember that this kind of pricing still excludes the true value of your work. If you’re performing business-altering work, that has a financial price tag to it, as well.

My goal is to help you understand what these breakdowns look like for each client. Keep in mind that the type of clientele that you choose also matters. Small business owners with few employees will likely require much less work than more established companies with diverse product offerings and many employees. You can also charge clients differently for various services, which will affect how much you can make. You can set an introductory rate for basic bookkeeping, while other services such as tax preparation, financial analysis, and preparing budgets may warrant a higher rate or add-on charge. The average hourly wage for a bookkeeper in the United States is $20, but bookkeeper rates can vary from $18 to $23 per hour, dependent on education, experience, and additional skill set.

Charging hourly for your services is one of the most commonly-known methods. You see this with regular employment, some service-based businesses such as your plumber or lawyer, and many bookkeepers choose to start with an hourly rate. According to a survey by ZipRecruiter, the average national rate for a self-employed bookkeeper is $34.64 per hour, but these rates vary from one state to the next. The hourly rate ranges from $26.91 in Louisiana to $43.57 in Massachusetts. Meanwhile, the average hourly wage for in-house bookkeepers is approximately $21.10, ranging from $26.85 in Washington to $16.55 in North Carolina. You must understand what bookkeeping services you need and whether it’s best to hire a professional bookkeeper full time, part time, or outsource the service.

Templates, workflows and automations all give you time back in your day that you can spend building your client base and adding value for existing clients. With the right technology, you can automate bookkeeping processes and tasks that once took hours of your time. If you’re already doing a client’s books, approach them with an offer to build on your role. They already trust you and you already know how their business works. You can take into account the client, the job type, your experience, along with many other factors to give a fair quote. In any industry, experience is influential in pricing decisions, and bookkeeping is no different.

Small businesses are most often prone to outsourcing their bookkeeping to third parties. On paper, a part time bookkeeper may look like an attractive option. However, any error or oversight that may appear on the sheet is fully at your business’s expense. However, be aware that business size does affect https://www.business-accounting.net/ a bookkeeper’s workload and may lead to you paying more or even for a second bookkeeper to alleviate some of that burden. There is a fine line between overcharging and undercharging, but the sweet spot does exist and you’ll know when you find it, because your clients will be happy, and so will you.

If you’re contracted as a bookkeeper, your client isn’t in charge of your sick time or vacation time or disability or leave or anything that they may have to think about with an employee. Additionally, there are quite a few outside expenses that come with hiring an employee. At https://www.business-accounting.net/working-capital-what-is-it/ minimum, they need to provide you with an office space, a desk, and a computer. As a contractor, you’re using all your own equipment, so you’re saving them all of that money. As a contractor, the main thing that you are saving an employer–or your client in this case–is TAXES!

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